Trelleborg Wheel Systems 'adapting to lower demand'

Trelleborg, Sweden – Trelleborg Wheel Systems initiated "targeted activities relating to personnel”, during the second quarter of 2019 in order to “adapt to the lower level of demand”, the company announced 18 July.

The business area’s net sales marginally improved to SEK 2.59 billion  (€245 million) in the three months to the end of June, up from SEK 2.58 billion reported the year before.

Organic sales, however, declined 5% year-on-year, impacted by "the increased uncertainty caused by... escalation of trade conflicts on a global basis," said a company financial statement.

Deliveries of agricultural tires declined in both Europe and Asia, but increased in North America..

Organic sales of tires for material handling vehicles and construction vehicles also declined year on year, mainly due to a decrease in deliveries to North America and Asia.

While sales of tires to OE manufacturers in both segments generally performed well, sales to the aftermarket “declined significantly,” Trelleborg reported.

Announcing company results, Trelleborg CEO and president Peter Nilsson said market statistics published at the end of the quarter displayed “a significant decline” in the European aftermarket for agricultural tires during the quarter.

“Generally, we continued to grow our market shares, particularly in the OE segment, but this did not offset the decline in the aftermarket and also created a negative sales mix for Trelleborg Wheel Systems,” Nilsson noted.

Accordingly, he said, the business area initiated “targeted activities” during the quarter to adapt to the lower level of demand.